Royal Mail's surge in profits

Royal Mail have reported a significant surge in profits in its first set of results since its floatation on the London Stock Exchange. The Business Secretary Vince Cable will be quizzed by MPs today over the controversial privatisation of the company

Appearing in front of the Business Select Committee alongside Business Minister Michael Fallon, Cable said the privatisation operation was good for the taxpayer and for the future of the six day a week delivery service offered by Royal Mail.

Mr Cable said no decision had been made on whether to pay a multimillion-pound performance bonus to banks which advised the Government on the sell-off, adding it could take years before a judgement is made.

Billy Hayes, general secretary of the Communication Workers Union, said: "These results are based on performance when Royal Mail was still in public ownership. The rise in profits is further proof that there was no need to privatise this successful company.

"A profitable, successful and well-loved institution was flogged on the cheap when these latest figures show it was healthy and in good hands. The Government's arguments continue to crumble. These profits should be public money, not paid out to hedge funds and City institutions in dividends."